How Manpower Outsourcing Company Ripped You Off!

Remember the time when you were engaged in a contract or project that lasted 3-6 months or even 1 year? And you were hired under the “agent” and worked in the direct company, but the payroll was under an agent instead of the direct company? If you have been in such a situation before, the bad news is that you have probably been ripped off.

Ripped off? Why am I saying such a thing? Isn’t that a strong statement?

Well, give me a few minutes, and I will show you how and why you have been ripped off by your company.

Before you join the company, they will go through a certain process and ask you a few questions. Does this sound familiar?

1) They will ask you what is your lowest expected salary?

2) They will further push down your price, stating that this is out of their budget and your experience or qualifications are not to the level of your requested amount.

3) They will even give you a flat rate for overtime, or they will mention that you will not be paid at all for overtime.

4) Your normal working hours will be even longer, more than the normal 40-44 hours per week.

Let’s assume that your expected salary is $2,500, and you agreed to work 50 hours per week with an overtime flat rate of $20 per hour. That sounds reasonable, but wait till you see the truth below.

What happens is that this company will quote their client $4,200 per month at 44 hours, an over-time rate of 1.5 times, and charge them 2 times if you were to work on Sunday.

If you do the math, and if you do not work overtime, you will be earning $2,500 per month and the company will charged the client $4,200 + OT of 6 hours at $24 per hour which is a total of $144.00, hence the total is $4344.00.

Total charged to the company where you are working: $4344.00.

What you are earning per month: $2500.00.

Total amount you are losing per month, which the company is earning: $1844.00!!!

Imagine, if you are doing overtime every week, and the agent is earning much more!

This is how it really works: Because you do not have the SOURCE to reach the direct company, what happens if you are able to work directly with the company instead of the manpower outsourcing agencies? I am very sure you will be able to get a much better salary? Right?

So, from now on, you will need to be smart when you are applying for a contract or project-based job via manpower outsourcing agencies. Here is what you can do:

Use Google alert to search for job positions you are seeking for; go to www.google.com/alerts to create the setting; you will be able to receive news on what jobs are available almost instantly. If you are looking for an engineer position, set the alert to engineers, QA engineer, QC engineers, and other job titles that might be within your scope.

When there is an offer from the agencies, let them know you are worth more. If they really want you, they will give it to you.

If you have accepted job offers already, and there are some people doing the same job with you within the same department from the same agency, ask them how much they are getting. If it is higher, let the existing agency know that YOU know about the other person having the better salary. They will give you plenty of excuses and say that the other party is more qualified, has more experience…etc. Ask them to cut the BS….ask for a better price….most of the time, they will do it. IT WORKS!

Tell the agency that there other agencies offering you almost the same position at a much higher rate and you are considering them at the moment…bait them and negotiate for a better deal…

You see, the agencies out there are out to make money from your transaction, and you can make more money by following the steps above. It is not worth letting them rip you off! NEVER!

I know many out there who are working in a manpower outsourcing agency will kill me when they see my post, but what the heck; I just want to keep people informed on how you can be smarter and not get ripped off by them.

In the meantime, stay alert and be smart. If you are unsure, drop me a note, let me see whether the offer you are getting is really good. I can be reached at dc@dougleschan.com